In this webinar, you’ll learn about becoming a natural and ethical self-promoter, finding ways to break with the patterns, and the best tips for overcoming your prospecting fears! We’re joined by Debbie de Grote, the Owner and President of Excelleum Coaching, a five-time author and Real Estate Hall of Fame winner. While her background focuses primarily on Real Estate, her coaching and consultancy experience extends to other industries that revolve around sales.
[00:55] (Daniel) Hey everyone, Daniel Ramsey here with MyOutdesk. I’m really excited because, well, first we have a rock star today to talk to and she’s going to be dropping a ton of… I mean, it’s just insane.
So we have been in business 11 years. We have 5,000 clients in our history. Which means, as a company, we’ve done probably 20,000 one-on-one conversations and consultations with clients and helped them grow their business.
[01:24] (Daniel) But today we have a real treat. Because we have Debbie De Grote. Here’s the thing, she’s done 80,000 coaching calls. You know, we need 10,000 to gain mastery, so she’s done 80,000 which is nuts! She’s the owner-CEO of Excelleum. We happen to share a client who is the number one real estate team in the world. So we’ve got the coach of the number one real estate company in the world. We’re both CEOs, the number one real estate virtual assistant company in the world, so we’ve got a lot of winners in the room right here, right now.
[02:07] (Daniel) Today’s topic if you’re listening, is basically how to make more money and work less, which is a really big topic. Debbie and I were talking about this every quarter, you should be asking this question. How do I make more money, and how do I work less and spend more time with my family, and going to the gym and just having a good life, right? So, Debbie, thank you. Thank you for being here today.
If you’re here listening to us live, in the notes, we’re going to be taking questions this whole time. Go ahead real quick and type in where you’re from and how the weather is wherever you are,
because we love interaction. This is meant to be. We’re live on Facebook. We’ve got a bunch of registrations for this webinar, so if you’re here, just say hello. Debbie is amazing, and if you’re on this call right now we’re… I mean you don’t understand the amount of value we’re going to give for free, which is crazy.
[03:09] (Daniel) Debbie agreed to give away some scripts. So if you stay to the end, we’re going to give out some scripts, and an opportunity to meet with her and her team. Debbie, thank you so much for joining us today.
[03:21] (Debbie) You’re welcome. It’s a pleasure and I just want to congratulate those who are here because I was reading something the other day, Daniel. It said “The 80-20 rule of real estate,” 20% doing 80% of the business, is shifting in the future to the 90-10. 10% will be doing 90%, and I truly believe that that 10% are people like our listeners today, who invest in their education. They invest in taking their time to come and learn new things. So I love talking to people like this group right here.
[03:54] (Daniel) Well, you know, you’re not off. One of our one of our things, if you’re in the business of growing your company, if you want to double, which is totally possible. The number one guy in the world hired us in 2015. Among the top 100 people in the real estate game, like, half of them are our clients, and every year, they’re driving to double or grow. That’s the world that we’re all in, and I think the one thing, which is our topic today, is there’s this work life balance piece and leverage. There’s gaining knowledge and learning new things, and we’ve got Bill from Rochester, New Mexico I think? Rochester MN. Where is that? I thought Rochester was in New York. Maybe he mistyped? Minnesota. Okay, thanks, Bill. Welcome. Debbie. Let’s, let’s dive in.
[04:56] (Daniel) What we’re talking about is what are the things that you help people double their business or grow their business, while working less and and when should you do it, and what are the things that you help people do in that space?
[05:11] (Debbie) Yeah, and it is a great strategy. So number one, when someone comes to us… So Daniel if you came to us today and said, “I think I’d like to have some real estate coaching.” The first thing we do is we ask you to take our free DISC assessment, and by the way, any of your listeners, they’re welcome. It’s on my website, Excelleum.com. You just go to free resources, it’ll pop down it’ll say DISC. Take seven to 10 minutes, as soon as you’re done, easy, easy, and we’ll send a full report back about you.
[05:46] (Debbie) If you think about the the Steve Jobs, quote, here’s to the misfits, the rebels the square peg who who won’t fit in the round hole, this is a fabulous group of entrepreneurs and yet they’re all very different and very unique. I think often, when they try to do it some other way or some coaching gurus say here’s “our system get in this box,” it’s not effective, and therefore they’re going to work more, they’re going to work harder, they’re going to be stressed.
So the first thing is let’s know who you are. We’ll know your strengths, your weaknesses and we’ll also know the areas of opportunity you’ll shine in. So for an example, if you are a super highly analytical person, you’re probably not going to want to go out and host community events. That’s not going to be your thing. Now I could tell you to do it as a coach, but you won’t do it. So we first understand, who are they
[06:41] (Debbie) The next step I would encourage everyone here to do is look at your key sources of existing business. As I travel across the country, and you and I both do that, I find that most agents have two key sources. They really have three solid completely built out, and then we help them out of fourth and fifth. The five methods of pursuing business, you’re good. There’s going to be some bumps in one or the other, but you’re covered. But see, that goes back to being efficient, and having a system and a plan so that you get that predictable result.
Otherwise you wake up in a new month thinking, I don’t know where my business is going to come from, and I’m just going to work around the clock to try to find it, and it’s very haphazard
[07:30] (Daniel) Well, I want to slow you down because I think that first thing, “know who you are,” is such a big piece of successful entrepreneurs. One of our clients reached out to us, there was like a data problem, and they weren’t analyzing activities on the team, and activities for their virtual professional, so it’s like, knowing your strengths, and it’s because the owner of the company had turnover in her team. So she lost a main manager who was kind of the accountability person, who was the analytical person, and then she stepped into that role and hasn’t been able to fill it yet. I was like, “Oh my gosh,we need to get you some help, because that’s not your job. You shouldn’t be doing that. You’re a coach”
This person was a team leader, she has a lot of different offices. So, I think it’s really important to not forget we’re entrepreneurs, we have massive strengths, but don’t give me a spreadsheet and ask me to build pivot tables and like…
[08:34] (Debbie) So you don’t want to do something like this.
[08:36] (Daniel) Yeah, exactly. Exactly. So I think as entrepreneurs, we spend our time thinking, “Oh, I can do anything,” which is totally true, but not anything over a long time frame. I love what you said about “know yourself. know your strengths, know what gives you juice and energy.” Because that’s what it’s all about, having a great life enjoying and loving what you do and growing your company. That’s great.
[09:05] (Debbie) What happens, and I hear it a lot… Because primarily, who we work with Excelleum just by the virtue of my coaches being 25 to 40 years each industry experience, the deep consulting we do, it tends to be that top 10%. Our average client is 13.5 years in the business and 30 plus million, so they’re good, smart people. But, what I often see happen, and you’ve seen this too, they… How do they often put it? “I’m a control freak.” I’ve got to do it all because only I can do it best. Yet you and I know that the many, many clients I’ve had over the years that have used your virtual assistants, once they let go and they take those pieces that they can hand off, they’re shocked at how actually how much more efficient someone else can be when it is their primary focus and they’re very well-trained for it. But, they have to be willing to sit down and take a look at what they do and say, “Is this the highest and best use of my time?”
Like this spreadsheet I showed you, I know the numbers of my company, I track it. I don’t put this together. I have somebody put it together for me. It would take me like a week, it probably takes them a half an hour, and then they come in and they go through it with me. I know what I need to hand off, because about 90% of my day is billable time on the clock. So, we were talking before they came on board, and I think this is a great thing, Daniel, that I’ve helped clients discover that they needed to hire your team.
[10:52] (Daniel) Yep.
[10:53] (Debbie) I had them do an exercise, and this would be an exercise everyone could easily do over the next two weeks. Just make a scratch pad, carry it around with you and just write down every 30 minutes what you are doing. At the end of the day, go back and say, “All right, is it IP, income-producing?” So, making listings, showing buyers, prospecting, negotiating, closing, lead follow up, meeting face to face. Is it IP, or is it IS? Income servicing. Meeting appraisers, that type of thing, or is it S? Just other stuff.
What I find, the average good agent runs about 30% income-producing. Very good agents run about 50%. The rock stars, like a Sean Stanfield, who you and I have worked with, Sean runs probably 80 to 85% of his day income-producing. So once they do that, then I would say go back and look at the stuff, because I would imagine your team could take a lot of that stuff off of their plate, and even maybe some of the income-servicing items.
[12:14] (Daniel) Yeah. Well, what you’ve coined and what we’ve talked about in the past, we call it the sticky challenge where you just take stickies around and then you put them into different categories. But I think you’re, you’re absolutely right. We’re working with a million dollar producer. Yeah, exactly. We’re working with a million dollar producer and I had her do this, and she came back and she realized that 37% of our time was stuff. Not even income-servicing, not even income-producing, and she was just like, “Gosh, I’m doing a lot of busy work that has to get done, but it doesn’t drive my revenue,” and I think I think right now, pausing and saying, okay, “Who am? I What am I doing today? What needs to happen? I think you just kind of alluded to that, the five areas of business, like most people have two, you help them at a three, four, five. These are the steps that we believe you should do every quarter.
I love my father in law. He was an executive at a large company, and what he would do is he would go and check into a hotel in town. He would check into a hotel, turn his phone off and then just think, and really be strategic. I think one one challenge with the real estate community is we don’t do that, and it’s an important exercise, and that’s what you and I are talking about today. So once we’ve reflected, once we’ve kind of written down what we’re doing, we know who we are, we’re getting clear about what we love, what’s next Debbie?
[13:48] (Debbie) Well, I love it if they know their true value per hour. I was just looking at my calculator real quick. Let’s say that they want to earn 200,000 a year, let’s use that as an example. They’re going to work 48 weeks of the year, and they’re going to work at least 40 hours. Well, their value per hour is $110 an hour. That’s a lot it but it could be somebody listening to this, who wants to make a million bucks. Well, then obviously they’re value per hour is five times that. So, once they know their value per hour, I would encourage them, put it on a sticky note, put it on your computer and look at that each day and say, “Okay, so Is what I’m about to touch either very fun for me? So if they want to mow their own lawn because they love it, it’s relaxing, they grab a beer than they’re riding the lawn mower, more power to them. But, if you don’t enjoy it, it isn’t worth 110 bucks an hour. Delegate it. Measure everything by “Is this again my highest and best use?”
You know, I read the other day that if Bill Gates was walking along the sidewalk walk, and $1,000 fell out of his pocket, he shouldn’t even stop to get it. Because his time is so valuable he needs to keep moving. So I want them to get that anxiety of “I should not be doing this. This is not worth my time,” because what it will do is it will limit your income earning opportunity, it will add hours to your day. If you can get in that zone of delegation, using services Daniel, like yours, where their day is 80% income producing, now they can either add more income hours in or go home. That’s their choice. Some of them will want to work like crazy people. Others want to actually have a goal to make the same, but work 20% or 30% less. Well then you’ll have to delegate to somebody.
[15:58] (Daniel) Yeah. Everybody that’s listening, this is like a pro tip, because this is the mistake that most real estate people make. They look at their GCI as their number, and then they divide the amount of hours they work every week. I want you to go to your actual tax return last year and look at your net, the net income. 64% of all businesses show zero income for the year. So if you’re in that space, this is just like a gut reality check, your net income on your actual taxes at the bottom, excluding your spouse, excluding maybe other things that you got going on, and then divide that by the hours you work, and now you actually know your clear dollar per hour.
I’m in an accountability group and we we actually pull our taxes out at the end of the year and say, look, this is what I made. This is how many hours I’m working. This is what I’m worth per hour, and that that “aha” happens when you’re like, well, I probably don’t need to do that report, I should find somebody to do it for me, right?
[17:08] (Debbie) You know, people always ask me, “When should I hire some help, at what point in my career?” That depends a little bit on your budget, but I know that when I launched my own company, you know my history. I started selling real estate at the age of 18 and within two years I had a full time assistant. But then, within two years I was doing 156 units a year, could I have done that without my assistant? Heck no. No way.
But then as a coach, I ran the Mike Ferry organization and coached lots of the top people there. But then, six years ago when I left to open my own custom coaching and consulting, the very first thing I did was hire an assistant. I didn’t even have any revenue yet, but I knew if I’m going to quickly ramp the business, then I got to have help right away. So, it is a challenge sometimes to find that budget to do that, but it can also be the thing that holds you back in.
Honestly, Daniel. I think that’s why so many of our clients do use your services because, sure they’re not physically sitting in the office, but do you know what it would cost in Newport Beach, California, where I am, to hire a full time admin that has some training and background to come and sit here and work? It’s going to be anywhere from $50,000 to $70,000 a year, where I think your full time person is like under 2,000 bucks a month.
[18:46] (Daniel) Well, it’s 20,000 a year and which is in the low 20s, and this is actually, I don’t know if you read this, but it was a question that came in, “When is the right time to hire and how would I know, and what are some of the indicators?” Debbie and I were just talking about the indicators, when you start noticing your dollar per hour stuff, going down because you’re spread too thin. And then if you start seeing, things not getting done that really need to be done, and you feel like you’re dropping the ball in a couple areas…
[19:26] (Debbie) Or you’re working 18 hours a day, as I was before I hired my first assistant, back in the day of real estate. One other thing too, is they’ll often ask, “How many units should I be doing?” And we used to say, meaning used to like 10 years ago, I would have said maybe 40 units for most people. But the paperwork and the inspections, and the staging, and the demands of the client have increased. So now I’m finding most agents feel they’ve got to have some help, right at about 20 units. They’ll be able to use your virtual services and that carries them for a long time. Or if they’re a bigger producer, they might say, “Well, I’ve got my admin and I need to add a virtual to augment.” But, I would say at about 20 units for most agents, they’re going to start to feel slipping of all quality of life. If they are luxury agents, THEN especially, because of the demands.
We coach Ernie Carswell in Beverly Hills. Some of them might know that he sold, You know, you heard about a while back, The Brady Bunch house selling. That was Ernie. He’s Katy Perry and Fergie’s real estate agent. So he has a new listing right now that’s 26 million dollars. Well, he’s going to need some staff to really support that. So luxury is a little different because they’ll do fewer units. The demands will be even greater and those clients will not put up with anything but five-star service
[21:07] (Daniel) I want to make a point. If you’re listening to this and you are a large team, you’re doing a lot of business, you’d be like, “Oh, they’re talking about basics,” but I can personally tell you that I have been in the top 100 guys’s offices. I know what their team looks like. I know what they’re spending. I know how much they’re spending on lead generation. This exercise, regardless of where you are in the success ladder, needs to happen. In fact, I would say the people at the highest level. I hear it more often that I asked them “What’s your profitability?” And they’re like, “Well, I’m reinvesting into the business,” which is a simple word for “I’m not making any money.”
[21:48] (Debbie) So Daniel, I just came out with this book not long ago, Building Bigger, Busier, More Profitable Teams. So anyone watching who is a team or want to be a team, if you want to email me, DebbieDeGrote@gmail.com. It’s easy- DebbieDeGrote@gmail.com. I’ll actually send you a PDF of the book, so you don’t have to go out there and buy it, just because you joined us today. What’s cool about it is there’s about 25 different rock star teams interviewed in here, including Sean’s team.
What you’ll find is every one of those will say we we have to be better about our expenses, our profit, our delegation, tracking our billable time.You can have lots of talent and be all over here… In fact, a team came to us the other day for coaching and they said, “I used to make as an individual agent 350,000 a year. Then I built my team and I’m bringing in 1.4 million revenue, but now I’m taking home 100,000. That is not a good situation. Gotta get control the profit and the delegation well
[23:00] (Daniel) I just want to say real quick, this is the same problem that you have when you increase that to 10 million in revenue, because those guys that are making 5, 10 million dollars in the real estate game, which is a possibility… It’s real. There are teams out there doing that, there are a lot of them actually.
They have this this delegation process, they have this review. They have a double layer of accountability, and that’s what we help you guys create at MyOutdesk. This
previous team leader that I was telling you guys about, who lost someone, well she didn’t have anybody trained to backfill that position. So now she’s got her job, plus, she’s got to add the job of somebody else on to it, and there was no like you know double layer. There was no backup to step into that role, and so what she found was that she’s lost money because of that.
Looking back, she lost a lot of money because the person that was in our office just left and didn’t turn over the job, and there was nobody that knew what was going on. So you have this turnover thing that is more of a barrier to growing a big business than anything, and I think that’s another place that we helped these really large teams.
[24:21,] (Daniel) If you’re a newer person, these little concepts of paying attention to my dollars, knowing what I’m doing, loving what I’m doing, having energy from it, this is pure gold. This is the stuff that builds large businesses.
[24:37] (Debbie) I think a couple things, If we go to that next level… So yes, in a big team, about 60% of who we coach here at Excelleum, they are teams and some of the biggest in the nation. So the next level would be yes, eliminating the turnover. So sometimes when they do their own hiring and staffing, they make bad choices. They hire a friend who needs a job but is a wrong, wrong fit. I know your team, you’re very methodical about how you match them.
The other place that I see some breakdown is, you mentioned it briefly, it’s in the pipeline of lead conversion. So a lot of the big teams, maybe some watching us, they’re spending a fortune on online leads, and the average lead does not convert until it’s been nurtured for at least four months. They’ve got their buyer agents hitting it once or twice and then moving on, and then everyone’s frustrated because conversion is like 1%, and there is a bunch of money in that pipeline. I think that’s what Stanfield group, I believe they’re Stanfield Real Estate. I believe they’re using your ISA services to go back and scrub through some of those leads.
[25:57] (Daniel) Since we’re talking about it, we have a client in Florida, Andrew Duncan, who is really one of the most… I mean, I think they’re going to do like 1,400 or 1,500 transactions this year. He literally just in the lead management space, has one virtual assistant who holds everybody accountable to when the lead came in the door, how fast there was a response, and what is happening with that lead. So they staged their leads, and this person, all they’re doing is looking at the lead management, creating scorecards, daily accountability, and then pulling the phone system and dropping it onto that spreadsheet, and then doing pivot tables to say, “Hey,
these four leads never got a call. What the heck.” This is just one of our virtual assistants and this guy spends thousands of dollars a week on generating leads.
So, we’re talking about the problems, of what you should be planning for and thinking about, free your time, make sure you have the right leverage. What this is is a system of accountability for your team as you grow it. When you stop being the only person in the team that knows everything, and you hire somebody, you’ve got to create systems and processes.
[27:16] (Debbie) That’s what this sheet is here, so I know. Gary on my floor, who follows up with people and sets appointments for the coaches and I did to speak with them, I know how many dials he makes a day. A hundred. I know how many calls he talks to. 28. I know exactly how many appointments he books a day. I know what the conversion ratio is, but I can’t put that together, I need someone to. Then you can spot the gaps.
So, hiring turnover creates problems for teams, second would be, obviously, on their lead management and going back through a nurturing those. The third thing I would say is I see a very big lack of systems. You’d be shocked how many top producers, which probably know this, will say to me, “I don’t even have a CRM.” Whereas you and I, everything has a tracking, a funnel, a next.
So, we’re really working with our top teams right now to say, okay, with all the disruption going on in the real estate industry, with all the real estate portals trying to take your leads away and sell them back to you. Then you’ve got the flat rate, cut rate companies trying to poach. You’ve got to circle the wagons around your database, around your market. You’ve got to opt them in. You’ve got to market like a machine. If they don’t know how to do that, they need to get some help, and you and I could both help them in different ways.
[28:49] (Daniel) Yeah. I think what’s cool about us as a team is like, Debbie is going to get the plan together, make sure you have the right people on the team, make sure that you’re not missing any of those gaps. Because the biggest thing is, as real estate people we have these little blinders on and Debbie will slap you across the face and go, “Hey, check it out. This is what’s really going on.”
And then once you’ve got a strong plan in place and… And again, you should be doing this quarterly, those gaps need people to fill them in. A hundred percent of the time, it’s the people on your team. So if you go to our website, MyOutdesk.com, again, we’ll do a free consultation, just like Debbie does, because one of our core values is just servant’s heart. That’s why we share so many webinars. That’s why we interview people like Debbie, because we just want to help and be a positive force in the real estate world.
[29:43] (Daniel) That’s why Debbie and I get along so well, because that’s how she is too. The reality is you come in, if you meet with us, it costs you nothing and you will walk away with value. That’s for sure. Debbie, we had a question.
[29:59] (Debbie) This book. Now you can buy this book, you can go to my website or go online, but we’ll give it to you, but it’ll just come in a PDF format. So if you want it, it’s not going to go out automatically or anything. If you want it… Because not everybody will want it, just go ahead and email me. DebbieDeGrote@gmail.com. If you know you happen to think about it later and you send the email over a weekend, we’ll get back to you on the next business day, but we’ll make sure that we get that out for you. No charge at all
[30:33] (Daniel) Yeah, and I think education is really good, and reading books is really good, but I think you get that book, you book a time with Debbie and her team, and then you start looking at gaps and figuring out what needs to happen right now.
Okay, so I booked myself into a hotel. I’m completely by myself. I turned my phone off, so phones off, no email no family distractions. I ate a good meal, and then I’m going through the process of looking at my business strategically. What are some of the things… You’d mentioned the five lead funnels. So, let’s talk about those. How would I know what mine should be? How would I measure them? Give us some knowledge in that space.
[31:25] (Debbie) Sure. Well first you would start by looking at your review of your year to date, whatever time in the year that is for you. Maybe it’s the end of a quarter. Maybe it’s the end of the year. But you want to look back and look at all your transactions and say, “Where did they come from?” And I would even encourage them to keep a charting of that so they can easily look at that. But you guys know, you might forget the client’s name, but when you look at the address all of the deal passes before your eyes, right? And you can remember, and that’s important. Because if you see that a significant amount, which probably came from your database, past clients and sphere, where are the gaps there, and then what’s my action steps. So it’s not good enough to say, “I’m going to do a better job working my past clients. No. That’s an idea, that’s not a plan.
So the plan would be, I’m going to mail to them once a month an item of value. I’m going to call them once a quarter. I’m going to text them once quarter. I’m going to dial them once a quarter. I’m going to send an email once a week. That’s a plan. We encourage our clients to do the 55555; Five calls or face to face a day, five purposeful emails. Not a blast, but purposeful. Five texts and five handwritten notes. Sounds simple, but it’s more than most agents ever do. If I block an hour to an hour and a half a day, at the end of the year they’ll probably have something like 5,700 connections.
[33:01] (Debbie) So take each core piece, make sure they have a solid plan. Next, look at the opportunities their market is presenting that they may want to take advantage of. If you’re in a shifting market and you’re going to see more expired listings, well, maybe I need to add that.
If you’re in an area where you feel like you know there’s a great opportunity for geographic farming. Well, we need to add that, but we need to add it with strategy.
See, that’s what my coaches will help. They’ll say, let’s look at what you’re doing. Let’s look at your DISC. Let’s look at your market. Let’s plug in the opportunities that are going to give you the greatest return on your investment of time and money.
[33:45] (Daniel) How would you measure the money piece of it, because I think that’s an area that most agents miss. Like 70% of their business will come from their database and then I’ll ask, “Well, how much did you spend on your database?” And they’re like, “Oh, I haven’t spent any money on that.”
I’m buying Zillow leads for $10,000 a month. And I’m like, “But if 70% of your business came from your database and you’re spending zero money on that, what would happen if you spent some money?” So how, how do you negotiate that piece with them?
[34:16] (Debbie) Yeah, actually… I’m not here to tell them to give up their online lead purchase because I don’t know them, so I don’t know their situation. However, I do see a lot of our big teams either stopping a lot of those purchases and pouring it into their database, into the community, into social connections and events because they’re getting so much greater return. Others are ramping their budgets down and shifting it over, because if we’re not careful, what will happen is we’re chasing the pipe dream of these strangers. But the people who know and care about you and have been loyal to you, they’re not going to be loyal forever because everybody knows more than one real estate agent. If you’re not top of mind, maybe they’ll hunt you down, but they certainly won’t give you the referrals that they should give you.
[35:09] (Daniel) Yeah, they shouldn’t work to figure out who you are, that’s the point.
[35:13] (Debbie) Or try to find you. So I think as they set their budget… And that’s one of the things my coaches often help with is how do we allocate that, and then what are you spending that you’re not utilizing or it’s providing zero return? Because that might make them able to hire you and me both, to take their business to the next level.
[35:33] (Daniel) Okay. So, check yourself into a hotel, strategically look at your business, get your dollar per hour, figure out where your business is, make sure you have five pillars. What are the things as an owner of a real estate business I should be tracking? What things, if I’ve got a team or I’m building a big team? What are, as a company, my trackable metrics, the three to five that you see as the most key to to growing or doubling?
[36:05] (Debbie) Well, if you don’t have leads you have nothing. So you have to start with what are my lead funnels? Where the leads coming from and the quantity, and how they’re being managed and converted. So we got to have the lead generation. Then we’ve got to have the lead management. Managing to watch all those pieces and then how are we converting. If you have that, you’ve got a great business. If you have that you have virtually no business.
So I not chasing the bright and shiny object either, but really purposeful. In fact, I often recommend the book The E-Myth by Michael Gerber. It’s a great book about building duplicatable systems and practices, and they might need some help.
High “I” entrepreneurs are great people people, but they don’t always love that, so I think that’s the first three things. But then also they, as you mentioned, they’ve got to do that, visit the money every month. Where our deals coming from? What did we spend to get them? What’s providing a return, and how much money that actually put in my pocket? If I’m not putting money in my pocket, why am I doing this?
[37:30] (Daniel) Yeah. Okay, so first is leads, and all of the activities that generate revenue. So you’re tracking leads that are coming in, all the activities to handle those leads. Then I love what you said, you’re going to visit the money once a month. You’re just gonna make a date with your bank account once a month and your PNL’s, right?
[37:52] (Debbie) And it’s looking over everything, like we sit here every month and say, “Okay, so what did I pay my team members? What did we spend on marketing? What did we produce in sales?” Other costs, office, etc., and then that bottom line number is, “What did Debbie earn after all of that?” Because I’m not just doing this for fun. I mean you and I love what we do, but we got to take care of our families.
[38:22] (Daniel) Rather be snowboarding in Tahoe. Let’s be clear about that.
[38:29] (Debbie) Not me! I don’t want to snowboard. Maybe cooking or, you know, something like that. But yeah. So I think the leads, then managing the money. Also though, especially for those who think they want to build a team or have a team, because that truly is the big focus of the real estate industry today, because it’s one of the ways to get greater presence and dominance in a market. Run everything under that team leader name. It’s also one of the ways to have quality of life, because you can go on vacation and your team is still making you money.
If you’re going to be a profitable team, I would say the third big piece is each team member has to be a profit center. Years ago when Jack Welch took over the GE Corporation, he said, “If it doesn’t make a profit, it does not stay.”
[39:25] (Daniel) Or if we’re number one or number two in the in the industry.
Real quick, Richard came in late. Don’t worry, Richard. If you come in you interact, go to our website. We’ll be sending this back out. So if you’re registered we’ll send this out. It’s also on Facebook. So if you go to MyOutdesk.com on Facebook, you’ll be able to find us and see this from the beginning. But we want questions for you, buddy. So if you’re thinking about interacting, it’s good.
[39:53] (Daniel) Debbie, what you’re saying right here, I want to emphasize. Everybody on this team or in this in this call, we’re a team now. I don’t know if you know that, but you’re on our team, right? The Debbie and Daniel team.
Here’s the truth of real estate. If you aren’t good at real estate, it’s like you have a degree in something. If you decide to build a team, it’s like you went and you got a Masters or a PhD and a dual doctorate on arrows. It’s hard. I can’t tell you how hard it is to build a team and what you are saying is spot on. A profitable team where every individual is contributing to the overall success of that team. I just want to be clear. If you’re in that space, you’re trying to build a team or you want to build a team, doing it on your own is just dumb. You need to have help. You need to come in. Get a consultation with us, talk with Debbie. You need a coach, you need a mentor, you need a peer group, a tribe that’s helping you. It’s in the similar scenario. I know. Debbie has an inner circle group with high-producing teams and brokerages around the country.
It’s not easy, and you’re going to fail because you know how to close the transaction, you know how to get business, but you don’t know how to lead people to do that same activity, and if you can do that, you’re a freaking ninja.
[41:17] (Debbie) Well that’s the thing in The E-Myth Revisited. Michael Gerber talks about the lady who was a fabulous pie maker, and everyone said you should open a pie shop, and when she did, she failed. He talks about the fact that to be an entrepreneur, and that’s the “E-Myth. The entrepreneurial myth that just because you can sell ice to Eskimos that you can go build systems and processes, and run a team, and it’s not their fault that they can’t. It’s just a different skill set and it’s something that we weren’t taught In school,
That’s why in the book, in the team book, one of the critical things we have there is a self-discovery questionnaire. A team-building questionnaire where they really sit down, answer questions to assess what’s their goal for this, and where do they not know what to do. Where are they going to get stuck?
[42:14] (Daniel) Where are their gaps? What are their gaps?
[42:16] (Debbie) Yeah, and especially for teams, having help like you provide, having a conversation with one of my coaches, it will keep what happened to this lady, where she went from making 350 to 100,000 and had the worst year of her life, It will stop that from happening.
[42:36] (Daniel) Okay, you’re gonna make me do this. I’m okay. If you’re listening right now, it should be a third, a third, a third. So a third on getting the business and and kind of getting it in the door. A third on running your business, employees office overhead. And a third should go to your pocket.
We’re in a service-based industry. Every real estate person out there thinks they’re special in some way. But a third, a third, a third, that’s a highly profitable model. That’s what you should be running at if you have a team of five or 50. These are the numbers, and maybe there are times that you go from a 30% profitability and you shrink that down to 15 or 20 because you’re launching a new market, or you’re launching a new initiative. But if you’re in a service-based industry that’s the model. So if you’re not right now making a third of your revenue, and you’re not reporting that to the government as your income, and you sell this like…
Well, Daniel I wrote that off, so of course, I’m like that’s that’s after write offs, guys. You need to get a strategy call with us and we will help you fix it. That is the that’s the bottom line. So if you’re overworked. If you’re not loving what you’re doing. If you’re checking your cell phone at 11 o’clock at night, every night or waking up first thing in the morning and jumping on. If you have turnover in your team. If you’re not netting a third, just come get some help.
[44:17] (Debbie) Because it really is an amazing business. When did I have that? I saw the other day, I think I might have found it. I might have it right here.
[44:28] (Daniel) Uh-oh, what are we doing? We’re pulling out the myth.
[44:32] (Debbie) This old magazine. Okay guys, so I was…
[44:36] (Daniel) Is THAT you?.
[44:36] (Debbie) Yeah, that’s me. Yeah. Okay, shut up. Yeah, the big hair. But if you could see this. I don’t know if you guys can see it. So it says at 24, earned 425,000 last year in residential real estate, and this is 1986. So if you think $425,000 then, now, it would be more, obviously. But that was the year I think it was 156 units, I think I was 24 years old.
But here’s what I did right I had an incredible mentor. I had a phenomenal support system of a terrific assistant and part time assistant, and I, I literally Daniel, I know this is going to sound goofy. I didn’t even put gas in my own car because I did not want to slow down to do that. So, my husband would put gas in, or my assistant would go pick up lunch and put gas in. I mean, I was all about the billable time. But yeah I worked too much, and that’s why I like to help agents now get the extra help. (To Daniel) You didn’t exist then.
[45:52] (Debbie) Guys, do it the right way because it still can be amazing. I mean a high school kid can do that within a few years with no special, you know, money, no college degree. No REO accounts. It’s a wonderful business, but you’ve got to get your groove going, and then the sky is the limit. So I’m going to have a great, great time and enjoy it.
[46:20] (Daniel) So we’re going to end real quick, but we’ve posted in the notes here where you can jump on and schedule a call with Debbie, schedule a call with MyOutdesk. I love what you’re saying. Real Estate people, we have no CapEx, meaning we don’t have to buy an expensive manufacturing place. We have no inventory. There’s no overhead, if you choose it. You get to work with people that you love in your community. There’s not a lot of dollar investment to get into it, there’s not. If done right, it’s a very fast path to being a millionaire, and what you’re going to get when you basically get a strategy call is we’re going to go where you are today, figure out what your gaps are and help you double your business. That’s the whole point of giving us a call.
Debbie is giving away some free stuff in that if you do it. She’s got the real estate script books which we’re going to give you if you come in and do a consultation with us. If you email her, she’s got this book that she’s going to give you We’ve agreed, we’ve got our staff ready on standby right now to talk with you. It costs you nothing. All you’re risking is your time, and if anything, we’re going to help you think differently about building a great business, and regardless of what time you’re in or what’s going on in your world, right now is when.
And if you feel stuck, if you had turnover. If you can’t grow, if you’re pounding your head on the wall. If you’re working like a bazillion hours, like Debbie did in the beginning, like I have in the past, it’s a real thing, burnout is real, Debbie. I know you help people every day with it. Just come and get a call.
Thank you everybody for joining us. Debbie, You’re amazing. What are you gonna say?
[48:13] (Debbie) I was just gonna say, and I just want to let them know, some of them have probably done strategy calls somewhere out there before. When they do it with me or when they do it with you, these are not boiler room sales people. They are going to talk to actual consultants who will actually give them valuable advice. I hope they’ll take advantage of that gift because I think you and I both agree, we’re more than willing to earn the opportunity to help them and thank them for being with us. And thank you, Daniel for letting me join you. It’s always fun.
[48:44] (Daniel) Yeah, yeah, yeah, and we can’t stop!. Her coaches have 25-plus years of experience, some are 10 15, tthey sell real estate. Ours are real estate-trained and a lot of our people are licensed real estate people. I’m a licensed broker. We’ve done this. We’ve been where you are, and we’re going to help
[49:03] (Debbie) We’ve got your back.
[49:05] (Daniel)Exactly! We got your back, man. We want to help. Yeah. All right, Debbie. Thanks again for all your time. You’ve dropped a lot of knowledge and it’s all for free, guys. So we hope you enjoyed it. Visit MyOutdesk.com/Debbie and get in her calendar.
[49:20] (Debbie) Alright guys, have a great day. Bye Daniel.